tv Special Report With Bret Baier FOX News July 18, 2011 3:00pm-4:00pm PDT
captioned by closed captioning services, inc ♪ ♪ >> bret: new details about operation fast and furious. the gun running operation that went horribly wrong. president obama insists that progress is being made over the talks in the debt crisis. others are not so sure. and while some 2012 hopefuls are setting their sights on why, others downplay the state. live from the studio in washington, this is "special report." good evening. i'm bret baier. as lawmakers on capitol hill are questioning the f.b.i. and a.t.f. about operation fast and furious, tonight we hear exactly what the a.t.f. director told investigators in a secret meeting. william la jeunesse is in los angeles with an update tonight. good evening, william. >> reporter: congressman darrell issa and senator grassley are not prepared to call at it coverup but they
say the testimony released today from the acting a.t.f. director nelson shows the justice department is actively withholding information and prohibiting people from telling the truth. in a letter today to attorney general eric holder the lawmakers warn him to stop stonewalling saying, "it's not a fishing expedition." time for d.o.j. to get out of spin mode and in disclosure mode. nelson claims he wanted to meet with congress about fast and furious and that the d.o.j. said no. they were more interested in protecting the administration politically. "it was frustrating," nelson said. "it appears thoroughly to us the justice department is trying to figure out a way to push the information away from the it will call appointees at the department." this doesn't surprise a former judge and u.s. attorney who reviewed the fast and furious indictment. >> there is no way you can have an operation of this size and this magnitude and not have the highest levels of the
government i think know about it. >> nelson says the a.t.f. prepared what he called a smoking gun report. internal review of case that suggests intradiction could have occurred with the guns and probably should have occur and did not occur. nelson said the d.o.j. objected to the release. "the deputy attorney general office wasn't very happy with us because they thought the report was an admission that there were mistakes made." there were mistakes made. investigation is about documents and testimony and congressional investigators say they have less than 1% of the documents they want from the department of justice. it's also a shot across the back to you and suggests that the congress was probably one step closer to contempt hearings or a special prosecutor. back to you. >> bret: we'll stay on it. william, thank you. there are just about two weeks left to break the political stalemate ahead of the august 2 debt ceiling deadline. day treasury secretary says is the day the u.s. could start
defaulting on the obligations. mike emanuel has the latest details. >> good evening. this afternoon, president obama issued a veto threat of the cut, cap and balance plan which is due to be voted on in the house tomorrow. fine-tuning continues on a bipartisan fallback plan in the senate. >> we're making progress. >> reporter: today, president obama offered that update on the debt negotiations. late sunday morning after church, the president met privately with speaker john boehner and eric cantor but no significant progress or agreement was reached. momentum appears to build around the backup plan. mitch mcconnell is fine-tuning with mary reed to allow the -- harry reid to allow the president to raise the debt ceiling three times for $2.5 trillion. allow republicans who oppose to vote in disapproval each time. it includes $1.5 trillion in spending cuts and creates a new congressional committee looking in to how to cut
trillions more. mcconnell continues pressing for bolder change but is losing hope. >> the republicans are trying to persuade the president of the need for a course correction. but weeks of negotiations have shown his commitment to big government is simply too great to lead to the kind of long-term reforms we need. >> reporter: reid says lawmakers must find a solution. >> we'll stay in session every day, saturday and sunday until congress passes legislation to prevent the united states from defaulting on negotiation. >> reporter: in chicago, key ally expressed support for the mcconnell-reid plan. >> more work to be done. joint committee can tackle it but it's responsible way out of the crisis. >> reporter: lindsey graham favors constitutional amendment but there isn't enough support in the senate. >> we have the people behind us. 72% of the american people want balanced budget. >> reporter: the president called for shared sacrifice. >> i am still pushing for to us achieve a big deal.
but what i said to the group is if we can't do the biggest deal possible, then let's still be ambitious. let's still try to at least get a down payment on deficit reduction. >> reporter: but the cochair of the president's own deficit commission has not been impressed with what washington is considering. >> so many people are talking about doing it with just about $2 trillion of deficit reduction. that is not a solution. that is not going to fool our creditors. >> reporter: credit agency moody's suggested the u.s. remove the debt ceiling altogether to remove this uncertainty. considering all the heartburn over the nation's debt, that would appear to be unlikely. bret? >> bret: thank you. at a time when president obama and lawmakers of both parties are struggling to find spending cut of $20 the $4 trillion, one republican is offering his colleagues a menu of options for more ambitious savings. chief washington correspondent jim angle has the story.
>> reporter: republican senator tom coburn is unveiling a plan to reduce deficit spending by $9 trillion. shrink government by some 20%. and balance the budget all within ten years. >> it's specific, it's detailed. makes hard choice and it's rough but it is necessary. >> reporter: coburn questioned the agonizing over the much smaller savings of $2 trillion. >> $2 trillion doesn't pay our interest in the next ten years. that is with no increase in interest level. >> reporter: coburn's 600-page report lays out spending cut from every nook and cranny of the federal government. save $1 trillion if the pentagon, $1 trillion from discretionary spending and $50 billion more from range of agencies. >> we're cutting fat. not muscle or bone. we can take several inches from the waistline. >> reporter: he weighs in on the tax code to eliminate deduction by $1 trillion, which brought criticism from grover norquist from americans
for tax reform, criticism that he anticipated. >> people who call at it tax increase defend earmarks for ethanol, tax earmark for movie producers, stimulus tax breaks, tax break for eskimo whaling captain and deductions for vacation homes. >> reporter: he would eliminate the deduction for vacation home and phase out deduction for mortgage interest on homes more than $500,000 and he takes aim for tax break on all sort of project from auto racetrack to hockey arenas to movie theaters. hep notes some deductions are ridiculous, such as an exotic dancer writing off breast enhancement as business expense. he would eliminate many tax deduction but not raise the tax rate. ratio of spending cut to re-knew increases is 7.5 to 1. the senator has no expectation his plan will be adopted as, is but says it offers a menu of well-researched places to cut. >> i hope people pick out things in this. the fact is it is a treasure trove of how to solve the
country's problems. >> reporter: whether the president or other lawmakers see it that way is another question. coburn is offering more spending cuts than anyone else and revenue on which democrats have insisted. whether it should break the log jam isn't clear but he offered broader range of choices than before. >> bret: more on this with the panel. thank you. a new cbs news poll shows that 71% of people polled disapproval of republican handling of the debt crisis negotiations. president obama received the most generous rating yet. 48%. still disapprove of his effort. 58% disapprove of congressional democratic efforts. joining me now with historical perspective on this, senior political analyst brit hume. >> hello, bret. 16 years ago, newly elected republican house went toe-to-toe with democratic president or spending, deficit and yes, raising the debt ceiling. the new speaker newt gingrich engaged in a series of white house negotiations with president bill clinton and
aimed at a compromise to avoid a government shutdown. talks failed. so republicans who controlled both house and senate passed a bill to keep government open. they attached a significant package of spending cutting. mr. clinton though he said he favored cuts insisted programs dealing with things like the environment, education and medicare had to be protected. sound familiar? the president vetoed the bill. which left the government short of funds and unable to borrow. the result was a partial shutdown. which to the coner the nation of the republicans -- consternation of the republicans -- public hated. the media coverage at the time you wouldn't know the precipitating event was the president veto. as far as you could tell the republicans simply shut the government down. in the end, they were forced to give the president everything he wanted. the situation now is not at the point yet there are differences. economy is weaker now. public alarm about spending and debt are stronger. parallels to 1995 are striking and the danger signs for republican congressional leaders are unmistakable, as
the latest polling makes clear. >> bret: what do you make of what republicans are doing now with the "cut, cap and balance" movement in the house tomorrow? >> it may be a fine idea but political terms it's pie in the sky. they may be able to pass it through the house but i don't see how in the world it gets through the senate. i think it will fail there. the balanced budget constitutional amendment is a nonstarter. the president is says he will veto the thing so it doesn't go anywhere. if the result of that is that the, we have parial shutdown, it will be bigger than the shutdown in 1995. the way things are going the republicans get the blame. >> bret: we'll follow it. thank you. stocks were down. dow sunk 94-1/2. nasdaq gave back 11. nasdaq dipped 25. is president obama getting the small money donations that made his 2008 campaign so successful? the answer later in the grapevine. but first, republican 2012 hopefuls and their strategies in iowa. my cream is what makes stouffer's fettuccini alfredo
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>> bret: in america's election headquarters the republican hopefuls are focused on making good impression in the upcoming straw poll. but others are looking past iowa. carl cameron examines the strategy for 2012. >> reporter: former minnesota governor tim pawlenty kicked off three week of iowa barn storming in advance of the fox debate an straw poll with an r.v. tour and warning that iowanss should not waste their support on charismatic candidates who can't actually win. all but calling rival michele bachmann unelectable. >> it's of no value or little value if you pick someone who the rest of the party and the rest of the process and the rest of the country says that person can't really be president. >> reporter: iowa democrats accused pawlenty of driving minnesota's economy in ditch with press quotes on his record on governor. campaigning in iwhat where she
leads first of the nation caucus polls, minnesota congresswoman bachmann largely ignores pawlenty. today she played up a close house partnership with popular iowa congressman steve kung to defund and repeal obamacare. >> it will be socialized medicine in the united states. it's a crown jewel of socialism. >> reporter: bachmann went to south carolina where she signed the "cut, cap and balance" pledge. two weeks said she said it doesn't go far enough but it's become top priority of powerful senator jim demint and fiscal hawks in congress in texas, governor rick perry's record is getting closely scrutinized, too. his state budget shows a surplus but it has grown faster than inflation and population growth. and spending has grown faster than under the predecessor bush. perry's day of prayer and fasting in houston is august 6. right when he initially planned announce the decision to run or not. he has said he could take more time but he told the des moines register i am getting more comfortable every day this is what i've been called
to do. "undefeated" about sarah palin premiered around the country. distributor said it grossed $50,000 for $5,000 per theater. there is talk of a wider release. palin is on call for jury duty in alaska through the end of the month. by the end of the week there will be another candidate in the presidential field. former louisiana governor buddy romeer who has little name recognition and less money is considered a longshot but he will announce his candidacy thursday. los angeles mayor antonio villaraigosa characterized this past weekend as carma-heaven instead of baccari. theof carmageddon. the gridlock never materialized. crews got the stretch of road back in operation, 17 hours
ahead of schedule. easily in time for the monday commute. another construction closure there will required in 11 months' time. gal is up. crude oil prices fell amid growing fears of a possible debt default on either side of the atlantic. august futures dropped above 31. president obama bypassed elizabeth warren to nominate richard cordray today to head the new consumer protection agency. correspondent shannon bream look at the republican opposition to the pick, the agency itself and how it could impact the 2012 race. >> i am happy about this. this is a moment for celebration. >> for more than a year, elizabeth warren fought to get the new consumer financial protection bureau part of the dodd-frank regulatory law up and running, but today
president obama nominated former ohio attorney general richard cordray to lead the bureau as the first director. warren said she recruited cordray and stands with those calling for quick confirmation. >> we believe richard cordray is the right person. president believes he is. the record is exemp rarely. the record in ohio is impressive. he is the right person for job. >> the backlash from some g.o.p. senators was swift. not directed at cordray. instead they renew objection to the new agency itself. shelby said, "until president obama addresses our concerns by supporting reasonable structural changes we will not confirm anyone to lead it no accountability, no confirmation." republicans want a single director replaced by a full board. they want the agency to the
aprop ration process and check and balance system to promote excessive regulation. warren says the vote on capitol hill last year ended the debate. >> so the same republicans are saying no, no, no. we want to keep fighting the debate and stick a stick in the spoke of getting the agency up and running. unless you agree to rip off the arms and legs from this agency. we went let it go forward. i think it's a deeply shocking position. >> without changes, some republicans vow to fight the nomination. but the president says he will stand firm. >> i will fight to repeal the changes we passed. >> i asked about the rumors she may run against scott brown returning home to massachusetts. she said she needs vacation and time with her grandchildren before deciding what do next. >> thank you. those battling traumatic brain
>> bret: checking the international headlines now. general david petraeus the next c.i.a. director handed over command of u.s. and nato-led troops in afghanistan today to marine corp general john allen in his first message to troops, general allen wrote, "without question, tough days remain. and the challenges will be many." russia has criticized the u.s. and other western countries for recognizing libya's rebel national transitionm counsel as the nation's legitimate government. russia's foreign minister says the west is taking sides in a civil war. russia also said it will not
offer libyan leader muammar gaddafi asylum if he steps down. european union leaders say syria's government must immediately end the crackdown on opposition protests. if it is serious about holding a national dialogue on political reform. activists say the discovery this weekend set off a sectarian killing spree that left 30 people dead and n a sign the revolt is inflaming religious tensions there has been a flurry of new developments in the scandal surrounded the defunk "news of the world" tabloid with a death. investigation that stretched to scott lant yard and the government itself. that paper is owned by news corp, the parent company of fox news. senior foreign affairs correspondent amy kellogg is live in london with the latest. good evening. >> reporter: good evening, bret there are numerous reports this evening that sean horr, the former celebrity reporter of "news of the world "and the
first to blow the whistle on the aed knowledge of the phone hacking that went on was found dead. police will not say that the body found was that of him, pending a formal identification. but there are already tributes to him on twitter tonight and the body was found in his apartment. police are saying that they are treating the death as sudden. at this point, not suspicious. as an investigation begins. today, scotland yard number two was forced to resign. the latest casualty of the phone hacking scandal. this less than 24 hours after the commissioner himself stepped down. both claim their integrity is intact. but say staying on would be distraction amidst intense media coverage of the role police may have played here by not thoroughly investigating the "news of the world" hack the first time around a few years back and hiring "news of the world" editor now under arrest as p.r. consultant. rebekah brooks who le signed as the head of rupert murdock's empire friday was arrested by police sunday
after she voluntarily gone in for questioning. she was released on bail. her lawyers say they now want answers about her arrest. >> the condition of rebekah brooks can be simply stated. she is not guilty of any criminal offense. the position of the metropolitan police is less easy to understand. >> reporter: the government remains potentially tainted as well with prime minister david cameron on official business in africa, again under pressure to explain why he hired andy colson as the chief of communication. he stepped down in january and was arrested last week. >> no one argued that the work he did in government in any way was inappropriate or bad. he worked well in government and he then left government. >> reporter: now, bret, after brooks' arrest on sunday, her appearance before a parliamentary committee scheduled for tomorrow to answer questions about the phone hacking was in jeopardy.
but that is scheduled to go on tomorrow she will be there. along with rupert murdock and his son james. then finally, parliament called an emergency session for wednesday to address the phone hacking issues here. bret? >> bret: we'll continue to follow all parts of this story. amy, thank you. a group of internet hackers claims to have tampered with the website of rupert murdock's son newspaper. murdock is the chairman and parent of news corp. earlier today, visitor of "the sun" website was redirected to a page that had a story saying murdock's dead body was found in the garden but now they're redirected to lull's twitter feed. they called the attack successful part of murdock meltdown monday. no comment from "the sun." a rare bipartisan moment when it come to government healthcare in grapevine. a group of vladimir putin supporters show how far they'll go to get their guy
>> bret: now fresh pickings from the political grapevine. we are learning more about how president obama re-election campaign with the joint committee account got to thing there 86 million fundraising figure for the last quarter. at least $35 million of that came from bundlers. the liberal talking point memo describes bundlers as super
donors who are very rich. max out their personal fundraising amounts. and then call on their wealthy friends to the the same. the "washington times" reports 634 donations to people giving at least $30,000 total. totaling $23 million. even though campaign manager jim messina bragged 98% of all donations were less than $250. the republican national exe was quick to question obama's grassroots claims saying quit's clear the hope and change president is bought and paid for by liberal fat cat donors." the democratic national committee was quick to pounce on republican presidential candidate mitt romney's fundraising. romney's campaign claimed to have raised over $10 million in the single fundraising push on may 16. the dnc says filings show the one-day total was $2.4 million. $7 million short roughly of the goal. romney's campaign says the money raised associated with the event included early
contributions and future pledges. a comprehensive medicaid reform law passed with broad bipartisan support in illinois. it's partially blocked by the federal government. a group of illinois republicans say the centers for medicare and medicaid services cms recently decided to disallow a provision of the law that would require medicaid beneficiaries to show they had low incomes as well as proof of residency. they lived in the state. republican senator mark kick said the legislation would save the state $800 million in the next ten years. kirk and his colleagues asked c.m.s. to re-examine his decision. c.m.s. spokesman tells fox while some of the state initial proposal did not comply with federal law, c.m.s. worked hand in hand with the state to offer alternate solutions to address their concerns. finally, there is a growing online campaign to support current russian prime minister vladimir putin for president. again.
it has women ripping off their clothes. the group calls itself putin's army. invites girls to strip for putin. for the chance to win an ipad ii. in a video, a blonde student strut ace long moscow's streets before scrawling on a white t-shirt with lipstick in russian, "i will tear off my clothes for putin." and then begins to do just that. we're not showing the whole video here. putin served as president from 2000 to 2008. of the nearly 2 million americans who suffer brain trauma each year, 90,000 survive with long-term disabilitys but the insurance benefits are limited and fill with loopholes. correspondent laura ingle says one case of traumatic injury has a wider problem. >> reporter: 18-year-old corey suffered a traumatic brain injury known as t.b.i. nine months ago in a devastating car accident. >> i got the phone call that no parent wants. >> reporter: also sustained
a broken neck and multiple fractures. >> the brain not only was hit by the impact, it spun within her -- the frame of the skull. >> reporter: doctors say the best chance for maximum recovery is 12 months of intense inpatient rehabilitation. she was released after only 6-1/2 months. according to her mom, independent blue cross of pennsylvania sent her daughter home way too early. medical opinions differ over the best treatment. the insurance company defends her care, saying corey's transition to home was consistent with the recommendations of the professionals at the rehab hospital who noted ongoing therapy could be provided in a less intensive setting. her surgeon disagrees. >> we try to provide the maximum benefit in the period of time that brain's ability to rehabilitate and regeneral rate exist. >> reporter: this is one example of the family that is left heart broken and buried in bills.
>> this is one month of medical bills and she hopes congress will intervene. >> reporter: the new jersey representative cofound over of the congressional brain injury task force is asking to make treatment essential benefit under the patient protection and affordable care about. >> they will define the guidelines so brain-injured people can feel assured. that they are going to get proper care. >> reporter: the department of health and human services is considering the request telling fox h.h.s. will be engaging in a public process later this year to get broad input for the process of establishing essential benefits. until then, families like the beatties continue to fight in pennsylvania, laura ingle, fox news. >> bret: we will look at the latest attempt to solve the debt crisis including one republican senator's ambitious plan with the fox all-stars in a moment. [ male announcer ] what if that hemorrhoid pain
i would suggest you think long or hard whether you'll vote for "cut, cap and balance" legislation that the house is taking up tomorrow. mate be the only option we have if you want to see the debt limit raised at all. >> what we are witnessing here with this measure is classic washington washington, posturing, kabuki theater. this is a measure designed to duck, dodge, and dismantle. >> i can't see how my republican that was elected in 2010 could vote for a plan that doesn't cut the government at least equal to what you raise the debt ceiling by. >> bret: the sights and sounds of this day just about two weeks until the debt ceiling hits august 2. where are we? what is next? bring in the panel. rick klein, senior reporter for abc news. join williams, columnist with the hill. and syndicated columnist charles krauthammer. tomorrow the house votes on "cut, cap and balance." where are we on this and the back and forth? >> "cut, cap and balance"
almost has nothing to do with the debt sealing. this is the republican letting off steam. this is important piece of political positions. the white house saw it as such and they know they have to fire back with a political response. this is a side show what is going on with the debt ceiling negotiation there is talk of a backup plan and the two sides are fundamental will opposed to what needs to be done. >> bret: juan, the president met privately at the white house sunday with the house speaker and the house majority leader. we didn't know about it. he says progress is made and we don't know what that is. >> the white house is still shooting for the big deal. they believe if they talk to mcconnell and boehner they have sympathetic ears to understand the damage that could be done for the republican brand by a failure to make a deal. they are supported by the polls that came out that said the american people pretty
much side with the president in the debate. whether who is responsible for the impasse. mcconnell and boehner are under pressure from the tea party type in the house. can they get the freshmen to back them up? mcconnell continues to put something like this forward to put weight on president obama to say he raised the debt ceiling and the republicans had nothing to do with it. >> the question is whether one cbs news poll that is poor for republican charles, equates with the mandate they felt being elected in november of 2010. >> they have to make a choice. they are losing the public relations battle. obama managed together with the suspect por of the is up line press but -- support of the sublime press. that will happen all the time.
obama has spun this to i am reasonable. it seems to me there is one way out. it's sitting there, i'm shocked that the republicans haven't acted on this. they need to pass. a short-term again, say half a trillion dollars will give you five months, cuts only. there is no why obama can veto it with any reasonable argument. juan says he wants a big deal. he says it won't have the issue arise again until election. this is a partisan political maneuver on his part. it is indefensible. if the republicans pass a short-term cut, they reverse the public relations on this. they could get a cut. >> bret: talking about the political maneuvering here. they are talking to the big
problem. take a listen to this. >> so many people talk about doing this. with $2 trillion of deficit reduction. this is not a solution. that is not going to fool our creditors. >> everyone else is talking about $2 trillion. it doesn't pay the interest in next ten years. >> tom coburn coming up with his own plan, entitled back in black. here is some of it re deuce the size of government 20 to 25%. balance the budget in ten years. $3 trillion from entite #alment reformat, $1 trillion from the tax code reform, $1 trillion in saved interest costs. adding up to $9 trillion total and says it's specific the plan. conrad late today responding this is a bit too much. what about this?
>> the interesting thing is the perspective from the debate, this won't pass congress is it puts revenue on the table. not many republicans are willing to do that. democrats will go back to that and say even tom coburn is willing to do it. >> bret: the tax code is restretchtureed and close it down. the republicans haven't been opposed to that from the beginning. if there is a major change, they said they would close the loopholes. >> right from the perspective of the short-term production now it's difficult argument. they are willing to talk about it auz a separate discussion but they are focused on the cuts. i think tom coburn's message isn't a good one for most of the republicans right now who are very, very opposed to going anything against grover norquist americans for tax reform pledge. >> bret: you say it's too late to begin? >> maybe. >> bret: juan? >> it's difficult for republicans or democrats to look at the cuts seriously
because they're so large. 25% of the government is massive as you can see. the trillions of dollars. they had $2 trillion according to some estimates on the table. in negotiations by the biden group with cantor and the lik like. >> bret: $2 trillion doesn't pay the interest in ten years so there is a sense even from the s&p 500 warning it's not just the debt ceiling but the bigger issue of the $14.3 trillion. >> it is. there has to be cuts. i think everybody agrees across lines there has to be substantial cuts and take on entitlement spending. how do you do it and negotiate and navigate to get us there in some successful way? the other part of this that you have to keep in mind that you have a sharp cut in government spending given the state of the economy, it could drag the recession down. >> juan is saying it's possible to cut the size of government by 20%. obama in two-and-a-half years increased it by over 20%. discretionary spending. it's way, way up.
all of that coburn is doing is reverting to from-obama. second, what coburn is doing increasing revenue is not new. he supported the recommendation of the bowles-simpson the commission, which included within tax reform; meaning, you lower the rate, you eliminate the loophole so you raise the revenue with the loophole. you return the revenue to the ordinary citizen in tax cuts. republicans who are responsive will have supported that. coburn has the right idea. their only opposition is that all he wants to do is raise the revenue through the tax loopholes. you have to pair that. then you get the 1986, a deal between reagan and tip o'neil with a quarter century of almost uninterrupted
expansion. >> bret: bowles was in the sound bite that you heard about the 2 trillion number. next up, latest on the 2012 presidential race on the gp side. the 3.6-liter v6 engine of the jeep grand cherokee has a best-in-class driving range of over 500 miles per tank. so you can catch morning tee time in pebble beach and the afternoon meeting in losngeles all without running out of gas. st make sure you don't run out of gas.
>> bret: all the republican candidates want to get there to the white house. they are focusing on iowa, the iowa straw poll in ames august 13. the g.o.p. debate on fox is august 11. here is the latest poll out. quinnipiac has a new poll out that says mitt romney at 25%. michele bachmann at 14%. this is nationwide. sarah palin, rick perry, 10%. you have can see the rest there. the governor of texas said this. he has his day of prayer coming up in houston august 6. he says, "i'm getting more and more come president ofable every day this is what i've been called to do.
this is what america needs." talk about running for president. back with the panel. juan? rick perry in? >> it looks that way. now he says he hasn't, he is not ready to announce anything. but i have to believe if he is waiting he is thinking money. do i have the money to do this? you know what? it flies below the radar but rick perry is a tremendous rundraiser. he raised $22 million last quarter for the republican governor association. broke records there. haley barbour from mississippi, terrific politician. rick perry did better. rick perry has a good economy in texas. some people say she creates low-income jobs but they're doing better than the rest of the country and he will take momentum away from bachmann and romney. he could be a bridge between the tea party republicans and establishment republicans. he would be a big player if he gets in. >> bret: his record, though, in texas is getting scrutinized. the state budget has grown faster than inflation and population growth and the spending has grown faster than his predecessor george w. bush. rick, if he gets in, if he is
as expected gets in, what does it do to the iowa race? conventional wisdom is congresswoman michele bachmann is positioned well right now. >> it makes things interesting. ames is critical for a lot of candidates and it would become critical for perry even if he is not a candidate. he needs springboard to come in saying look, without lifting a finger this is what i did. that is the boost that goes, to his back as he moves ahead. it throws iowa in contention. >> bret: iowa is big for other people, tim pawlenty and herman cain and others on list. ron pall has a following in iowa as well. what about that? >> there are two storylines. one will any of the all-star, running in the low single digits like a cain or a santorum or a gingrich, will they rise to any level and be competitive?
iowa is a place to do it. if not, they are semily out of it. the other story is pawlenty. trying to hold his own. him against bachmann. if she defeats him handily in iowa he is done. he knows, because he is putting all the resources in iowa. that is his chance. those are storylines and the prize in both of the story lines is to be the anti-romney. perry comes in and he could be the third anti-romney. he already is third in the polls among those who are running. assuming he runs, which i'm sure he will. so, he is ahead of everybody except for romney and bachmann. he is starting from an advantageous position. >> bret: what about romney's strategy in iowa? right now he is taking part in the debate on august 11 but not taking part in the ames straw poll. jon huntsman is the same way. viewing iowa not necessary to his path. is that a dangerous move? >> i think is it very dangerous. if you look to the last cycle
and think what happened with rudy giuliani and the guys that decided we can bypass the social conservative, a fool's game. you don't gain momentum. south carolina is sitting right there and south carolina is going to bring back the social conservative issues. by the way, rick perry is a guy who is strong on abortion. a guy who has a strong position in gay marriage and he appeals to the social conservative. if he is there with the money he's a major player. >> bret: agree? >> yeah, the potential is he invites somebody else to the dance not making a big play in iowa. if he made a big play and won it, won caucus, it could be over before it started. it makes strategic sense on one level that he dumps resources in there and had nothing to show for it except for embarrassment to overcome the rest of it there is a risk there from a front-runner to skip an early state. >> bret: we haven't talked about sarah palin what she would do to the race in iowa if she got in. that's it for the panel. stay tuned for example of a
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>> bret: finally tonight, in the midst of the tense debate, the debt ceiling debate ongoing, the president tried to lighten the mood today while announcing his nominee to lead the consumer financial protection bureau. it's never a good sign when you have to announce a joke. >> now, last, but not least, back in the 1980s richard was also a five time jeopardy champion and a semifinalist in the tournament of champions, not too shabby. that's why all his confirmation -- all his answers at his confirmation hearings will be in the form of a question. that's a joke. >> bret: i think i could hear the contradicts there. i'm not crickets there. that's it for "special report." fair, balanced, and unafraid.